The number of auctions and clearances were higher in the week to Saturday, which experts say shows vendors and buyers have gained confidence that interest rate rises are coming to an end.
The clearance rate, 71.3 per cent, was a touch higher than the 71 per cent initial rate a week earlier – a figure subsequently revised down to 64.5 per cent – as the number of scheduled auctions rose picked up to 1911 from 1746 in the east coast-dominated national market, CoreLogic figures on Sunday showed.
The house at 82 Mons Avenue in eastern-suburban Sydney’s Maroubra, on two titles for a combined 733sq m, sold $517,000 over reserve for $5,017,000.
In eastern Sydney’s Maroubra, competition between just two families for a large home on two combined titles pushed the property – which had been for sale since March – more than 11 per cent over its $4.5 million reserve price for $5,017,000, showing the pick-up in the market.
“It was out of control, with a flurry of activity from the registered bidders,” sales agent Bethwyn Richards of The Agency Eastern Suburbs said of the 82 Mons Avenue home.
“The property had been quietly on the market in March and the highest offer was $4,250,000. The result is reflective of how the eastern suburb appears to change every three months and the shortage of quality property.”
In a national market where higher rates and reduced spending power are hitting consumers unequally, it’s not all positive news.
CoreLogic’s final auction clearance rate has been trending lower and the 0.8 per cent growth in the data provider’s home value index over the four weeks to Saturday is weaker than May’s 1.3 per cent gain, with the weakness more likely in outer suburban areas of Melbourne and Sydney.
But the figures could suggest that housing demand is ramping up as buyers increasingly feel the rate-tightening cycle is near its peak, said CoreLogic head of research Eliza Owen.
“This week’s auction figures hint at a little more confidence restored to the market, despite elevated auction volumes for this time of year, rising listings, and the uncomfortable transition that many households are making away from low fixed rates,” Ms Owen said on Sunday.
In Sydney, 75 per cent of the 589 reported results – out of a scheduled 772 auctions – cleared, making for the highest preliminary clearance rate in five weeks.
In Melbourne, where the preliminary rate of 69.5 per cent reflected the reported 659 results of the 842 auctions scheduled, low stock levels were making buyers desperate in the well-heeled suburbs.
“People are bidding beyond what they’re comfortable bidding at because there are such low stock levels,” said Emma Bloom, a buyer’s agent who works in the city’s prestige areas. “It’s almost panic buying.”
Last week Ms Bloom represented an underbidder in a midweek auction of a three-bedroom house at 24 Denham Place in Toorak.
The three-bedroom house at 24 Denham Place in Melbourne’s Toorak sold at auction for $4.21 million.
The home on 370 square metres had a guided price of $3-$3.2 million, up from an original guide range $2.65-$2.8 million and sold at auction for $4.21 million.
“That’s $1 million over the latest raise of the quote and $1.5 million more than the original quote,” she said. “That’s a disgrace.”
Sales agents James McCormack of Marshall White said the initial range reflected his agency’s appraisal at the time of listing.
“We lifted the quote two times during the campaign,” Mr McCormack said.
“We perceived very quickly the level of interest was beyond where we were appraising the property. Under no circumstances did we expect the result we achieved.”
Ray White Victoria and Tasmania chief auctioneer Jeremy Tyrrell said activity was remaining strong.
“Even with these increases, buyer activity was strong as confidence builds with interest rates remaining on hold for the past couple of months,” Mr Tyrrell said.
Brisbane was the busiest of the smaller markets, with 125 auctions scheduled and a preliminary clearance rate of 62.5 per cent based on the 88 results recorded so far.
Adelaide had the strongest preliminary rate of 74.5 per cent, based on the 55 reported results of 92 scheduled auctions. Canberra posted an initial rate of 68.5 per cent based on the 54 reported results of 69 scheduled auctions.
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